Replies to post #5099 on The Rising Influence of Rising Affluence

[DewDiligence]

MON was one of the few stock that rose today (+2.2%); it boosted non-GAAP EPS guidance for FY2012 (ending 8/31/12) to a range of $3.65-3.70, up $0.16 from the prior range of $3.49-3.54:

http://finance.yahoo.com/news/monsanto-boosts-fiscal-2012-profit-131417252.html

Hugh Grant, Monsanto's chairman, president and chief executive, told investors at a conference in New York that he expects year-over-year ongoing earnings to grow up to 25 percent this year, with earnings growth in the "mid-teens" following in fiscal 2013.

…Monsanto said it saw strong seasons in both the northern and southern hemispheres that began early [due to the unusually mild weather] in the year and continued through the third quarter. The company also saw strong demand at its seed and traits business and better-than-expected sales of chemical products including its Roundup herbicides, along with strong demand at its lawn-and-garden businesses.

Today’s webcast slides are at: http://www.monsanto.com/investors/Documents/2012/2012.05.20_FINAL_Hugh%20Grant_SB_nn.pdf

and MON’s own PR is at: http://monsanto.mediaroom.com/2012-05-30-Monsanto-Increases-Fiscal-Year-2012-Earnings-Guidance-Projecting-Up-To-25-Percent-Ongoing-Earnings-Growth-Free-Cash-Flow-Guidance-At-High-End-Of-Previous-Outlook .

MON reports FY3Q12 results on 6/27/12.

[DewDiligence]

Class action challenges MON’s royalty-collection system for soybeans in Brazil:

http://www.reuters.com/article/2012/06/13/brazil-monsanto-idUSL1E8HDDUQ20120613

If MON were to lose this case (including the appeals), it would have to strongly consider withdrawing it soybeans from the Brazilian market, including the recently approved Intacta product with insect protection and second-generation Roundup Ready trait (#msg-60109375, #msg-76031308).

Note: There is no royalty-collection problem with corn because all commercial varieties are hybrids and hence growers would not gain by replanting seeds from the prior season.